Policy Credit - Empowering Social Security and Sustainable Development in Dak Lak

Three months after the administrative unit consolidation, the operations of the VBSP Dak Lak Provincial Branch have remained stable, consistent and effective. Despite the restructuring of the organizational system and transaction network, both staff and customers have maintained their familiar credit activities. Preferential credit continues to reach villages, remote areas, and ethnic minority communities, offering the poor and policy beneficiaries greater opportunities to improve their livelihoods and move forward.

Ensuring Stability and Expanding the Impact of Preferential Credit

According to Mr. Dao Thai Hoa, Director of the VBSP Dak Lak Provincial Branch, thanks to the close direction and guidance from VBSP Headquarters, the Provincial Party Committee, the Provincial People’s Committee and the Representative Board of the Board of Directors of VBSP Dak Lak, policy credit programs across the province have been implemented in a consistent manner, with the right focus and to the right target groups.

“Following the administrative consolidation, our operations have remained stable and uninterrupted. The transaction network at 287 communes and wards continues to function regularly, ensuring safety and convenience for local people to access services. The overall credit quality of the province continues to be rated as good”, Mr. Hoa shared.

Social policy credit in Dak Lak has truly proven its effectiveness, bringing better and more secure livelihoods to thousands of disadvantaged people across the province

In the first nine months of 2025, the total operating capital of the VBSP Dak Lak Provincial Branch reached more than VND 14.335 trillion, an increase of over VND 1.400 trillion compared to the end of 2024. Central Government capital accounted for nearly 92%, while entrusted funding from the local budget made up 8.1%, a significant rise year-on-year. The total outstanding loans stood at approximately VND 13.876 trillion, up 8.03%, with more than 251,000 active borrowers.

Preferential credit has been delivered to more than 62,500 poor households, near-poor households, and other policy beneficiaries; supporting 17,349 workers to secure jobs; enabling 392 disadvantaged students to continue their education; and financing the completion of 19,971 clean water and rural sanitation facilities. Many ethnic minority households have confidently invested in industrial crops, livestock production, and household-based economic models, helping improve their livelihoods in a sustainable manner.

Another highlight is the continuous improvement in credit quality: overdue and frozen debts account for only 0.20%, lower than the beginning of the year. Several transaction offices such as Krong Bong and Lak have no overdue debts. The network of more than 6,200 Savings and Credit Groups operates effectively, with over 96% rated as good.

The Power of Coordination and Community Trust

The effectiveness of policy credit in Dak Lak is also driven by strong coordination between VBSP and mass organizations such as the Farmers’ Union, the Women’s Union, the Veterans’ Association, and the Youth Union.

As of the end of September 2025, entrusted outstanding loans amounted to over VND 13.840 trillion, accounting for 99.7% of the total portfolio. These organizations not only manage entrusted capital, but also act as a vital bridge between the bank and communities - enhancing communication, monitoring, and supporting borrowers to use loans for the right purposes and with high efficiency.

Policy credit programs have been implemented smoothly, with the right focus and targeting the appropriate beneficiaries

Mr. Dao Thai Hoa, Director of the VBSP Dak Lak Provincial Branch, emphasized: “This is a unique model, clearly reflecting skillful mass mobilization and the coordinated efforts of the entire political system. Each credit officer and each member of the mass organizations serve as a bridge, bringing both funding and trust to every household”.

Notably, after the consolidation, district-level transaction offices quickly re-signed joint documents with the unions and associations, organized regular coordination meetings, and addressed difficulties at the grassroots level to ensure smooth entrusted operations. Local authorities in communes and wards continued to support the arrangement of transaction points, maintain security and order, and create a convenient and safe environment for people to carry out transactions.

Alongside maintaining stable operations, the VBSP Dak Lak Provincial Branch actively advised the province on issuing important documents, concretizing Directive No. 39-CT/TW of the Secretariat on “Enhancing the Effectiveness of Social Policy Credit in the New Period” and Prime Minister’s Decision No. 1560/QD-TTg. The Dak Lak Provincial People’s Committee has issued Plan No. 127/KH-UBND and Decision No. 0901/QD-UBND, recognizing policy credit as an effective tool contributing to sustainable poverty reduction and the economic development of ethnic minority areas.

Towards Sustainable Development

Currently, the Branch is coordinating with the Department of Finance and related units to adjust the Policy Credit Scheme for the 2026-2030 period, aiming to increase the share of entrusted local budget capital to 15% of total funds, equivalent to over VND 3,600 billion - more than three times the current level.

Mr. Dao Thai Hoa added: “This is a strategic step to enhance local proactivity and self-reliance, gradually reducing dependence on central government funding. Expanding local funding will enable more and more poor and near-poor households, as well as rural workers, to access credit, improve their incomes, and enhance their livelihoods”.

After the consolidation, the VBSP Dak Lak Provincial Branch quickly stabilized its organizational structure, ensuring that 100% of transaction activities were maintained smoothly

In the final months of 2025, the VBSP Dak Lak Provincial Branch aims to continue aligning with the VBSP Development Strategy to 2030; accelerating digital transformation in credit operations; enabling 100% of Savings and Credit Groups to conduct electronic transactions; enhancing management efficiency; and minimizing risks.

With strong support from the Provincial Party Committee, the Provincial People’s Committee, and the unified efforts of the entire political system, social policy credit in Dak Lak continues to affirm its role as a “solid pillar” for the poor and a “bridge of compassion” that spreads values of sharing and solidarity within the community.

Mr. Dao Thai Hoa affirmed: “Policy credit not only brings economic efficiency but also fosters spiritual strength and strengthens people’s confidence in the companionship of the Party and the State. This is the foundation for Dak Lak to continue achieving sustainable and inclusive development, ensuring that no one is left behind”.

Cong Thai